Commerce Secretary Sunil Barthwal said Monday that the government is engaging with stakeholders to resolve challenges and identify opportunities arising from the US tariffs, which have ignited a global trade war involving large trading blocs such as the European Union and China. “India is proactively engaging with the US. Commerce Minister Piyush Goyal met with the US Commerce Secretary and the United States Trade Representative during his visit to the US earlier this month. The government is weighing both opportunities and challenges emerging from US tariffs. We are conducting stakeholder consultations on these issues and will resolve them on a bilateral basis,” Barthwal said during a press briefing. The Indian Express reported on Thursday that steel and aluminium exporters had informed the government that $5 billion worth of goods had already been affected by Trump’s 25 per cent tariffs on these metals, which took effect last week. Pankaj Chadha, Chairman of the Engineering Export Promotion Council (EEPC) India, said that since the voyage time to the US is around 60 days, about $1 billion worth of shipments are currently on the high seas and will be affected by this duty. However, several exporters told the government during a consultation meeting that India is already receiving higher orders as key US suppliers such as China, Mexico, and Canada face steeper tariffs. Amid ongoing trade uncertainties and the escalating trade war, the World Trade Organization (WTO) has warned that increased trade policy uncertainty and the prospect of new tariffs could weigh on trade in the medium term. Ratings agency Moody’s had said last month that India has a lower overall exposure compared to most other countries in the region, although certain sectors such as food, textiles, and pharmaceutical products face risks. “Most companies in our rated portfolio are domestically focused, with limited exposure to the US market. To mitigate pressure from reciprocal tariffs, the US and India are reportedly now in talks for India to lower import tariffs on select US products, increase market access for US farm products, and boost US energy purchases, while seeking to initiate a trade deal by autumn 2025,” the ratings agency said.
